RESIDENCE INN2012 MARKETING PLAN

11/22/11

2

OVERVIEW

POSITIONING

CORE MESSAGE

TARGET

DISTRIBUTION

BUDGET

GLO

BAL

Power Brand: Third largest domestic brand by revenue and profit contribution. Strong profit margins and guest satisfaction.

Category Leader: Long-standing extended stay leadership in aided awareness, market share, and premiums vs. purpose-built competitors stemming from distribution advantage and market tenure.

Thrive – Residence Inn is designed for the extended stay business traveler. It is the only brand specifically designed to restore guests’ physical, mental, and emotional energy so they can thrive on their stay.   

“ Thrive”

“The Marathon Business Traveler” – Extended Stay FBT who views extended stays as “marathon” business trips when compared to shorter business trips. They place a high priority on being productive but also require a balance to stay in peak condition. They want to keep all parts of their life going so they can achieve their personal best. North America: 645

Europe: 2 CALA: 2 Middle East/Africa: 2

Total: 651 (Approximate through 2012)

North America: $13.9M (Approximate)

Europe: $.XM (TBD)CALA: $.XM (TBD)Middle East/Africa: $.XM (TBD)

2012 RESIDENCE INN

3

NO

RTH

AM

ERIC

A

KEY DRIVERS

CORE MESSAGE

TARGET

KEY COMPETITORS

Aging Product: Aging product and younger competitive product resulting in low scores on up-to-date (44%).

Consumer Awareness/Competitive Marketing: Low understanding of the extended stay category and the brand’s product offering compounded by lack of “suites” name vs. competition. Competitors have larger ad spends than RI, despite RI’s larger distribution, putting RI at risk in awareness, consideration and trip share.

Suppressed Extended Stay Occupancy: Relatively low ESOcc (low 40s) driven by economic conditions, compounded by increases in all-suite supply.

Market Share Threat: Significant increase in all-suite supply causing market share erosion threat. RI hotels with Homewood Suites in comp set underperform on RevPAR index.

“ Thrive” - Key Proof Points: Upscale Spacious Suites – Separate spaces for guests to sleep, eat, work and relax. Full Kitchens – Full kitchens with full-size appliances so guests can eat what they want,

when they want it. Strong Value Proposition – strongest value in an upscale environment with free Internet

and hot breakfast.Primary: “ The Marathoner” – Upscale, extended stay FBTs who are optimistic about travel and want the ability to be productive and continue their life's pace and routines in an environment that helps them renew and restore their energy so they can perform at their best.Demographics 69% male 62% married 41 years old is mean age $136k mean HH income

Secondary Targets: Business Travel: Extended Stay Consultants & Engineers/IT Professionals Personal Travel: Families – Suite Kids Vacations – Family trips with parents and children.Trip Profile: 54% family vacation; 87% Suburb or highway; 87% Travel by car; 81% Kids 5-12 yearsDemographics: Equal mix moms & dads; Ages 35-49; $75-150 HH income; Above avg. # of BTsHomewood Suites: Strong competitor who despite 50% smaller distribution beats RI on product per Brand Tracking Embassy Suites: Aggressive marketer with a strong value proposition and F&B offeringSummerfield Suites/Staybridge Suites: Emerging competitors to watch, backed by large portfolios Full Service/Select Service: more than 90% of 5+ night trips each year; 25% of the trips could be at extended-stay

2012 RESIDENCE INN

Psychographics Strong proponents of a balanced lifestyle due to extreme

BT. Sophisticated and look for professional treatment. Used to top notch service at stores and restaurants. Place a high priority on work & productivity, but want to

fully enjoy life.

76% college+ educated 82% Caucasian 60% suburban 23 BTs/6.53 XS trips

MACRO BUSINESS OBJECTIVE Increase RevPAR Index through extended stay business.

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Statistically significant lift in core messaging, key perception metrics, and intent to stay via ad tracker.

Lift consideration and trip share via Brand Tracker.

Grow extended stay occupancy rate. (Goal TBD)

Incremental personal travel room nights and revenue

Media impressions/unique visitors per month (UMVs)

Increase engagement and bookings from ri.com/m.com

Incremental revenue from Marriott Rewards communications

100% brand voice activation across all touch points

OBJECTIVES STRATEGIES METRICS

NO

RTH

AM

ERIC

A

Increase consideration and trial among extended stay travelers to improve ESOcc and the brand’s overall profitability

Capture mind share of family travelers to drive consideration and ultimately personal travel bookings

Activate internal channels to capture Marriott International loyalists and provide a foundation for all RI-related marketing activities

Establish RI as the dominant extended stay brand by “acting big” in marketing efforts

Evolve “thrive” ad campaign with goal of continuing to connect to extended stay travelers on an emotional level and combat the brand’s aging persona

Develop a deeper relationship with key brand loyalists and empower them to be brand advocates

Create innovative PR strategies to communicate RI’ s family leisure benefits/features to media

Activate relevant portfolio leisure strategy platforms to drive personal travel business, with an eye toward families target sub-segment

Focus efforts on high-impact internal channels (Marriot Rewards and m.com)

Develop tools to provide properties with the resources/guidance needed to activate and pull-through RI positioning and marketing efforts

2012 RESIDENCE INNMACRO BUSINESS OBJECTIVE: Increase RevPAR Index through extended stay business.

5

CHANNEL/ACCOUNTABILITY

PROGRAM/ACTIVITY METRICS

Broadcast and Digital Media

Public Relations

Social Media

Field Marketing/Sales Support

Extended Stay

Implement a new, breakthrough ad campaign that utilizes integrated communications, including TV, online, mobile and social media to drive consideration of RI’ s purpose-built benefits and improve up-to-date perception

Position brand as a leader in extended stay by combining traditional and social media outreach to business outlets , opinion leaders, and brand advocates

Expand “ Residence Inn Celebrates Moms” initiative spotlighting how RI caters to families & personal travelers

Introduce Residence Inn to global travel and consumer media, gaining awareness and consideration for the brand in major source markets .

Promote RI’ s unique service culture to media influencers

Develop a social media plan to develop relationships with RI’ s most loyal customers and encourage viral marketing

Provide relevant and compelling content for the RI audience in social media assets such as Facebook

Develop marketing/sales tools in refreshed brand voice

Pull-through sponsorships/promotions on-property

Create a sales/marketing playbook Utilize field/GMs to determine ESOcc and

leisure best practices and then activate best practices broadly

Leverage portfolio power of four MI extended stay brands and extended stay sales team to capture extended stay business via a focused cross-brand marketing strategy

Statistically significant lift in core messaging, key perception metrics, and consideration via ad tracker

Media impressions/unique visitors per month (UMVs)

Customer engagement on social media, especially Facebook

BrandWorks utilization Brand Voice activation

across all touch points

Lift in awareness/consideration

Bookings/incremental revenue

NO

RTH

AM

ERIC

A

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CHANNEL/ACCOUNTABILITY PROGRAM/ACTIVITY METRICS

NO

RTH

AM

ERIC

A

Marriott Rewards

Packages/Promotions

Partnerships/ Sponsorships

Diversity

E-CommerceMobileHWSM.comPaid Search

Develop programs and communications that tap into RI-loyal Marriott Rewards customers focused on extended stay and personal travel stays

Create an ESOcc-focused promotional strategy

Develop and merchandise a relevant weekend leisure strategy, with a focus on family packages

Leverage promo opportunities with AmEx OPEN

Leverage cross-brand leisure sponsorships, specifically “ Tots Travel Too,” weddings, and amateur sports

Create and leverage sponsorships focused on small business and on-property business services

Implement diversity-focused PR efforts, partnerships, sales strategies, and communications

Mobile – create consumer validated mobile experiences to differentiate RI within the larger portfolio mobile initiative. Test mobile paid search

Hotel Websites – revise design to reflect evolved Brand Voice; ensure proper photography and floor plans; leverage property and brand promo messaging

M.com - update global ri.com pages to align with new ad campaigns; leverage site-wide retargeting campaigns; explore LOS search result merchandising.

Paid Search – focus on extended stay and family messaging, expand mobile PPC presence, activate/test new opportunities

Engagement Lift in

awareness/consideration Bookings/incremental

revenue

Bookings/incremental revenue

Increase in ESOcc bookings

Access to potential new guests

GSS increase (business services)

Lift in awareness/ consideration

Bookings/Incremental revenue

Lift in awareness/consideration

Mobile – bookings/revenue and engagement

HWS – brand standard compliance and utilization of promotional messaging

M.com - site bookings/revenue and engagement

Paid Search – bookings/revenue

2012 RESIDENCE INN